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New NCASEF Officers Elected
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NACS Files Brief Opposing COVID-19 Vaccine Mandate
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NACS recently announced it has filed a brief opposing the Biden Administration’s emergency court motion to reinstate OSHA’s requirement that private-sector businesses with 100 or more employees have all their workers vaccinated or tested weekly for COVID-19. In November, NACS joined with nearly a dozen state and national trade associations in suing OSHA over its COVID-19 vaccination and testing emergency temporary standard (ETS). The petitioners seek a stay of the effective date of the mandate pending court challenges and ask that the court vacate and set aside the ETS. A NACS survey of its members regarding the OSHA ETS revealed that 99 percent of the industry expects that some employees would quit their jobs rather than undergo vaccination, and that 92 percent of the industry expects that some employees would quit their jobs rather than undergo weekly testing for COVID-19. The survey also found that c-store employers who indicated that employees would leave their jobs over the mandate expect that they would lose 32 percent of their staff. The survey also found that 89 percent of employers in the industry would be forced to reduce store hours; 58 percent would need to close one or more stores; 57 percent would expect increased difficulty getting products to their stores; 93 percent would face increased difficulty hiring staff; and 47 percent would expect reduced customer traffic.
Truck Driver Shortage At Historic High
The American Trucking Association (ATA) recently announced that the current driver shortage has risen to 80,000—an all-time high for the industry. A one-page summary of the estimate also revealed that, based on driver demographic trends, including gender and age, as well as expected freight growth, the shortage could surpass 160,000 in 2030. To keep up with demand over the next decade, the ATA said trucking will need to recruit nearly one million new drivers in order to close the gap caused by demand for freight, projected retirements and other issues.
New NCASEF Officers Elected
Congratulations to the newly elected NCASEF officers (from left to right) Romy Singh (Treasurer), Sukhi Sandhu (Chairman) and Joe Rossi (Executive Vice Chairman). The NCASEF held elections for the three officer positions during its fourth quarter Board Meeting, held November 15-17 at the Grand Hyatt Kauai in Hawaii. A candidates forum was held on November 16, and the following day Board members cast their votes. Each assumed their positions on January 1 and will serve two-year terms.
In-store Retail Sales Rise To Pre-Pandemic Levels
With brick-and-mortar stores now open across the U.S.physical store sales have increased, rising to 64 percent of all retail sales in September 2021 as online revenue growth slows down, according to The NPD Group.During the first year of the pandemic, between April 2020 and March 2021, e-commerce year-over-year revenue growth exceeded 40 percent every month,but it has mostly remained under 10 percent since that time. In-store gains over last year entered double-digit territory, beginning in March 2021, only dipping slightly in two of the six months that followed. “Physical stores are more relevant today than they were before the pandemic,” said Marshal Cohen, chief retail industry advisor for NPD. “Consumers are no longer buying primarily out of necessity and limited to online shopping which fell short of some expectations—choice has reentered the equation and they are hungrier than ever for the experience of in-person shopping.”
Judges Hesitate To Apply Employment Laws To Franchisees
Judges on Massachusetts’ top court recently expressed doubts that 7-Eleven franchisees should enjoy the same legal protections as rank-and-file workers, which trade groups say would eviscerate the franchise model, reported Reuters. The Massachusetts Supreme Judicial Court heard oral arguments in a bid by 7-Eleven franchisees to revive
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claims that they are actually glorified store managers and should be paid the minimum wage and receive other protections afforded to employees. The 1st U.S. Circuit Court of Appeals in October asked the state court to decide whether Massachusetts’three-pronged ABC test for classifying workers applies to franchise relationships at all. Justice Scott Kafker in early December told Shannon Liss-Riordan of Lichten & Liss-Riordan, who represents the plaintiffs, that he was concerned about extending legal protections to people who operate individual franchises, particularly when they own multiple stores and have their own employees. Liss-Riordan told the seven-member court that merely applying the ABC test to franchisees did not mean they would be found to be employees, and not doing so would embolden companies to use the franchise model to evade legal requirements. Norman Leon of DLA Piper, who represents 7-Eleven, said that because the FTC rule regulating franchise relationships requires franchisors to exert some control over franchisees, they would always be deemed employers under Massachusetts’ exacting standard.
FTC Launches Inquiry Into Supply Chain Disruptions
The Federal Trade Commission recently ordered nine large retailers, wholesalers, and consumer good suppliers to provide detailed information that will help the FTC shed light on the causes behind ongoing supply chain disruptions and how these disruptions are causing serious and ongoing hardships for consumers and harming competition in the U.S. economy. The orders were sent to Walmart Inc., Amazon. com,Inc.,Kroger Co.,C&S Wholesale Grocers, Inc., Associated Wholesale Grocers, Inc., McLane Co, Inc. Procter & Gamble Co., Tyson Foods, Inc., and Kraft Heinz Co. In addition to better understanding the rea sons behind the disruptions, the FTC said the study will examine whether supply chain disruptions are leading to specific bottlenecks, shortages, anticompetitive practices, or contributing to rising consumer prices. The orders require the companies to detail the primary factors disrupting their ability to obtain, transport and distribute their products; the impact these disruptions are having in terms of delayed and canceled orders, and increased costs and prices; the products, suppliers and inputs most affected; the steps the companies are taking to alleviate disruptions; and how they allocate products among their stores when they are in short supply.
Lawmakers Urge DOT To Allow Younger Truck Drivers
More than 80 bipartisan House members recently sent a letter to Transportation Secretary Pete Buttigieg urging the U.S. Department of Transportation (DOT) to allow truck drivers younger than age 21 to cross state lines with their cargo, reported NACS Online. The letter stated that allowing 18-20-year-old truck drivers to operate in interstate commerce would help ease a shortage of truckers that’s straining the supply chain.Although most states allow 18 year-olds to obtain a commercial driver’s license, truck drivers must be at least 21 years old to drive large trucks in interstate commerce.
Inflation accelerated at its fastest pace in No-
vember since 1982, putting pressure on the economic recovery and raising the stakes for the Federal Reserve, reported CNBC. The consumer price index rose 0.8 percent for the month, good for a 6.8 percent pace on a year-over-year basis and the fastest rate since June 1982. • Camden Food Express, a
convenience store located in New York’s John
F. Kennedy International Airport, recently launched an AI-based automated checkout service, reported Chain Store Age. Customers simply tap their credit card on a special reader as they enter the store, then the AI s ystem automatically identifies the items they pick off the shelves and charges their credit card when they leave the store. • Rutter’s—
which has 79 locations in Pennsylvania, Maryland and West Virginia—recently in-
creased its starting wage to $16 per hour. This is the fifth time the c-store chain has raised its starting pay in two years, and the third time in 2021. •
Wawa and The Wawa Foundation recently debuted its newest “Wawa in Your Communi-
ty” vehicle, which is fully equipped to brew and serve up to 500 cups of hot beverages—including coffee and hot chocolate—at one time. The vehicle made its first stop at Riddle Hospital in Media, Pennsylvania to thank healthcare heroes. • Walmart
and DroneUp have collaborated to make the first-ever drone delivery from a Walmart Neighborhood Market in Farmington, Arkan-
sas, reported Supermarket News. The drones, remotely controlled by flight engineers, can make last-mile deliveries within 30 minutes and the service could soon be expanded to a Neighborhood Market in Rogers, Arkansas, and a Supercenter in Bentonville. • The U.S. Postal Service is no lon-
ger delivering vaping products through the
mail, reported Vaping360.com. The new USPS rule was mandated by Congress in the Preventing Online Sales of E-Cigarettes to Children Act, which also forces vape shippers to comply with the Prevent All Cigarette Trafficking Act—a law that until recently applied only to cigarettes and smokeless tobacco and imposes strict requirements on shippers. •
Costco boosted its starting hourly wage to $17
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The trucking industry is short by an estimated 80,000 drivers, which is a record for the industry, according to the American Trucking Associations (ATA). ATA’s chief economist said that, although new truckers are entering the industry, the number of new drivers isn’t keeping up with the increased demand for goods.
Retailers Fight Vaccine Mandate
As other industries with workers in public-facing roles, like airlines and hospitals, have moved toward requiring COVID-19 vaccines, retailers have dug in their heels, citing concerns about a labor shortage, reported the New York Times. At the heart of the retailers’ resistance is a worry about having enough people to work. In a tight labor market, retailers have been offering perks like higher wages and better hours to prospective employees in hopes of having enough people to staff their stores and distribution centers and believe many will quit or not accept a job if they’re required to get vaccinated. The industry showed how
strongly it felt about the issue in No“Lawmakers are urging the DOT to vember when the Biden administration allow 21 to truck drivers younger than age operate in interstate commerce to directed companies with 100 or more workers to mandate vaccines or weekly tests by January 4. Five days after that anhelp ease a shortage of truckers.” nouncement, the National Retail Federation sued to stop the effort. The order is now held up in litigation, challenged by a number of lawsuits from a broad coalition of opponents, and could make its way to the Supreme Court. “Many retailers are not requiring that their workers get vaccinated, citing concerns about a labor shortage.”
Companies Plan For Wage Increases
Companies are planning for steeper wage increases in 2022 than at any point since the 2007-2009 recession, amid a tight labor market and the highest inflation in three decades, reported the Wall Street Journal. A recent survey by the Conference Board finds that companies are setting aside an average 3.9 percent of
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total payroll for wage increases next year, the most since 2008. The survey also shows that companies are planning on raising salary ranges, which would result in higher minimum, median and maximum salaries. That suggests pay raises could be broad-based and affect workers across a company’s pay scale. Such a sustained rise in wages could push consumer prices higher, as companies raise prices to compensate for pay increases. The dynamic of higher wages and prices could further stoke inflation and increase the chance of a spiral of rising wages and prices feeding on each other that could be difficult to stop, the article states. Roughly 39 percent of respondents to the survey said inflation factored into their decision to set aside funds for wage increases in 2022.
Inflation Driving Shoppers To Discount Stores
Supply Chain Problems Hit The Beverage Industry
Supply chain problems are hitting the beverage industry especially hard now, and things could get even tougher in the first few months of 2022, reported The Washington Post. While typical grocery categories are experiencing 5 to 10 percent of products out of stock right now, beverage shortages are higher, with around 13 percent missing from shelves. Shortages have been showing up in waters, iced teas and soft drinks, as well as beer, hard seltzer and canned cocktails. A shortage of bottles and cans is responsible for much of it, but trucking and shipping snarls, missing ingredients, labor woes and even freak weather are all contributing to shortages, leaving grocers scrambling to fill in the gaps. It’s just the latest example of ongoing food supply problems that have shown up in a variety of sectors, wreaking havoc on prices and contributing to the highest inflation in three decades.
U.S. consumers are increasingly shopping at discount stores, a sign that families are feeling the pinch from the highest inflation since the 1990s, reported Bloomberg. Spending at discount stores was up 65 percent the first week of November compared with 2019, and 21 percent from the prior week, according to Facteus, a firm that tracks credit and debit card transactions. The discount-stores category, which includes Dollar Tree Inc. and Five Below Inc., had the largest increase by far among all types of retailers,Facteus data show. The sharp uptick suggests that consumers—especially lower-income households—are seeking lower prices wherever they can find them. The last time discount stores saw a large increase in spending was in March 2021, when all retailers benefited from a $1.9 trillion relief program that sent new stimulus checks to millions of households. Now that relief programs have expired, Americans are hunting for deals. While wages have also risen during this year, the increase “While typical grocery categories are in prices for everything experiencing 5 to 10 percent of prod- from energy and rent ucts out of are higher, stock, beverage shortages at around 13 percent.” to food and eaten into vehicles has those gains.
Dollar Tree Increases Prices
Dollar Tree recently announced it will raise prices from $1 to $1.25 on the majority of its products by the first quarter of 2022, reported CNN Business. The change is a sign of the pressures low-cost retailers face holding down prices during a period of rising inflation. Dollar Tree said in a quarterly earnings release in late November that its decision to raise prices to $1.25 permanently, however, was “not a reaction to short-term or transitory market conditions.” Selling items strictly for $1 hampered Dollar Tree, the company said, and forced it to stop selling some “customer favorites.” Raising prices will give Dollar Tree more flexibility to reintroduce those items, expand its selection and bring new products and sizes to its stores. Dollar Tree also said that hiking prices will help the company increase its profit margins by “mitigating historically high merchandise cost increases,” including freight and distribution costs, as well as wage increases.
Retailers Offering Perks To Attract Workers
In today’s extraordinarily tight labor market, retailers are reworking their recruiting strategies in a bid to position themselves more favorably to potential employees,according to the U.S.Chamber
